Fresno Housing Authority Offering Rehabed Homes in Fresno -- but at what cost to tax payers ???

By
Real Estate Broker/Owner with Lazarus Realty

tinytuber The reason I am wondering is I happen to be looking at a listing for a home: MLS#358901

The home is located at 3423 E Illinois Ave, Fresno, CA 93702.

This is a small 2 bedroom 1 bath home with 808 sq. ft.

According to the listing information given this home "was totally redone by Housing Authority. Sharp, clean, newer carpet and paint in and out."

Public records that we have access to through our MLS (and which I consider to be generally accurate) state it was purchased by the Housing Authority (it actually reads City of Fresno) on 3/23/2010 for $106,696.

Please note that this is the price they paid PRIOR to totally redoing the house. I dont know what the remodel cost were but given that it was GOVERNMENT WORK my guess is it wasnt cheap. So, add the purchase price and then - being conservative - I will add $10,000 for the remodel. That puts the total investment at $116,696.00. Add in the realtors commission for selling 6%, plus closing cost (I'll add 1% for closing) and we have an additional $6300.00 --- bringing the total cost to $122,996.00.

Now, lets assume that the home sells at the full ask price (NOT LIKELY) and do the numbers:

Total cost to Housing Authority: $122,996.00

House Sells for full ask price of $90,000

= LOSS OF $32,996.00

....of course we are not factoring in the cost of the city administrators that were paid to oversee the purchase, the contracting process, and the sale.

TYPICAL GOVERNMENT WORK!

If these figures reflect the actual transaction numbers, and I think they do; only I think the loss will be greater because the house is likely to sell for closer to $75,000 then $90,000 ---> my question is : WHO THE HELL IS MONITORING THIS CRAP???

How many farking bad loans and money decisions by the City of Fresno are out there? The city guaranteed the loan on the Metropolitan Museum and they closed their doors.

I trust that you - the reader - know that when the government farks up, its you and I - the tax payers - that pick up the tab.

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Randy "Lazarus" McAtee

Owner/Broker, Lazarus Realty, Fresno California
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